Home sales are still pining away despite 30 year mortgage rates being below 5 percent. The current unemployment rate of 9 percent and tight credit are the culprits most say are responsible for the sluggish recovery. According to a news source, loans insured by the Federal Housing Administration carried an average FICO score of 703 in March, compared to a score of 629 two years earlier. FICO scores range from 300, the least creditworthy, to 850, the most creditworthy. Obviously, the lenders are requiring stronger credit histories, thus tightening the strings for mortgage loans.
As a result of the strings being tightened, two groups of people are most affected by the squeeze, homeowners who need to sell their homes and people who have been foreclosed on or who have filed for bankruptcy.